Under monopolistic competition, firms produce ________ products and have prices ________ marginal cost.
A. differentiated; above
B. differentiated; below
C. homogenous; above
D. homogenous; below
A. differentiated; above
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How do we adjust a current-period market graph to incorporate user costs?
a. Subtract the user costs from the supply curve b. Add the user costs to the supply curve c. Subtract the user costs from the demand curve d. Add the user costs to the demand curve e. Add the user costs to both the supply curve and the demand curve
If the market demand curve does not capture all of the benefits to society of buying an additional unit of good, then:
A. the allocation of resources will be socially optimal. B. the market equilibrium will not be efficient. C. the market equilibrium will be socially optimal. D. the market will not be in equilibrium.
The table below gives the quantities and prices for 2005 and 2015 for an economy that produces just two goods: sailboats and coconuts. Quantities ProducedPrices?2005201520052015Sailboats1020$500$525Coconuts2,0002,400$1$2 For this economy that produces just sailboats and coconuts, and with 2005 as the base year, real GDP was approximately ________ times larger in 2015 than it was in 2005.
A. 1.34 B. 1.77 C. 2.19 D. 1.65
Which of the following statements would come from someone classified as unemployed?
A. I'm not working. I had three interviews this week, and I'm trying to find a job. B. I haven't had a job in a year, and I stopped looking for a job nine months ago. C. I'm a full-time student at the University of Illinois who doesn't have time to work. D. I can't stand my current job as a telemarketer. I used to be a nuclear engineer.